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Rate of Failure of Czech Family Firms
[Míra úpadků českých rodinných firem]

Author

Listed:
  • Ondřej Machek
  • Tomáš Pokorný

Abstract

Family business is becoming a promising area of research in post-socialist countries, including the Czech Republic. Stability belongs to frequently cited properties of family firms. The goal of this article is to test the hypothesis whether family firms tend to have a lower rate of failure than their non-family counterparts. Using a sample of 1148 family and 5972 non-family firms in the Czech Republic, we find that there is no significant relationship between family involvement and rate of failure. A possible greater stability of family businesses is not necessarily linked with a lower rate of bankruptcy. We also discuss possible reasons and policy implications.

Suggested Citation

  • Ondřej Machek & Tomáš Pokorný, 2016. "Rate of Failure of Czech Family Firms [Míra úpadků českých rodinných firem]," Acta Oeconomica Pragensia, Prague University of Economics and Business, vol. 2016(3), pages 24-34.
    • Handle: RePEc:prg:jnlaop:v:2016:y:2016:i:3:id:534:p:24-34
    DOI: 10.18267/j.aop.534
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    References listed on IDEAS

    as
    1. Ondřej Machek & Jiří Hnilica, 2015. "Hodnocení vlivu zastoupení rodiny ve vlastnické a řídící struktuře firem na jejich finanční výkonnost pomocí metody zkoumání shody párů [Evaluating the Impact of Family Presence in Ownership and Ma," Politická ekonomie, Prague University of Economics and Business, vol. 2015(3), pages 347-362.
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    More about this item

    Keywords

    family business; bankruptcy; failure; Czech Republic;
    All these keywords.

    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General

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